PGZ vs VNQ: Correlation
Measured on weekly returns over the past three years, Principal Real Estate Income Fund (PGZ) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PGZ and VNQ?
Across a 3-year window, the weekly returns of PGZ and VNQ correlate at 0.73, strong. Recent behaviour matches the longer record: 0.76 over 1 year against 0.73 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 160.9 %².
Within PGZ's tracked universe of 13 assets, VNQ comes in at #5 by 3-year correlation. Their 12-month results are close: +7.6% for PGZ against +10.3% for VNQ.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
PGZ vs VNQ: side by side
| PGZ (Principal Real Estate Income Fund) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +7.6% | +10.3% |
| 5-year return | +14.2% | +9.5% |
| Volatility (ann.) | 13.2% | 16.6% |
| Beta vs S&P 500 | 0.42 | 0.59 |
| Max drawdown (3Y) | -10.6% | -17.5% |
| Market cap | $0.1B | – |
| P/E (trailing) | 10.2 | – |
| Dividend yield | 0.00% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | US Listed | ETF · Real Estate |
VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Year-by-year returns
| Year | PGZ | VNQ |
|---|---|---|
| 2022 | -28.0% | -26.3% |
| 2023 | +4.0% | +11.9% |
| 2024 | +18.0% | +4.8% |
| 2025 | +14.5% | +3.2% |
| 2026 | +7.9% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PGZ and VNQ good diversifiers for each other?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between PGZ and VNQ?
As of 2026-08-27, the correlation of weekly returns between PGZ and VNQ is 0.73 over 3 years, 0.76 over 1 year and 0.70 over 5 years.
Is VNQ a good diversifier for PGZ?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.73 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pgz-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pgz-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PGZ correlations · VNQ correlations
